Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698942399735.pdf (Zambia)
2024 BUDGET ADDRESS BY HONOURABLE DR. SITUMBEKO MUSOKOTWANE, MP, MINISTER OF FINANCE AND NATIONAL PLANNING, DELIVERED TO THE NATIONAL ASSEMBLY 2024 BUDGET ADDRESS BY HONOURABLE DR. SITUMBEKO MUSOKOTWANE, MP, MINISTER OF FINANCE AND NATIONAL PLANNING, DELIVERED TO THE NATIONAL ASSEMBLY ON FRIDAY, 29TH SEPTEMBER, 2023 1.
Madam Speaker, I beg to move that the House do now resolve into Committee of Supply on the Estimates of Revenue and Expenditure for the to 31st period 1st January, 2024 December, 2024 presented the to National Assembly on Friday, 29th September, 2023.

This is pursuant to Article 202 of the Constitution of Zambia (Amendment) Act, 2016.

2.
2.

Madam, I am a bearer of a message from His Excellency, Mr. Hakainde Hichilema, President of the Republic of Zambia, recommending favourable consideration of the motion that I now lay on the Table.

that 3.

Madam Speaker, this is the third Budget the New Dawn Administration is presenting to this House.

Since coming into office just two years ago, our Administration has achieved excellent progress in changing the social and economic landscape of our country.

4.
4.

Madam, on the economic front, Zambia’s external debt is now under control following the debt restructuring agreement reached earlier this year.

The rate of increase in prices of consumer goods or inflation, which we found at 24 percent, has reduced to 12 percent.

And, notwithstanding periods of instability, the exchange rate of the Kwacha is relatively more stable now than before.
Of particular significance is that the strategic equity partner for Konkola Copper Mines has now been selected while that for Mopani Copper Mines is imminent.

Once this process is concluded, the Copperbelt Province, and indeed the country at large, will soon come back to life.

5.

Madam Speaker, in the social sector, we have provided free recruited more public education, workers, scaled-up social protection, enhanced Constituency Development Fund, and devolved some functions to Local Authorities.
Madam, ordinarily, 6. these should be achievements over an entire 5-year term.

But this has happened in just 2 years!

7.

Madam Speaker, during the official opening of the Third Session of the Thirteenth National Assembly, President Hichilema emphasised on the need to build on the social economic gains I have just outlined.

His vision is to see a better Zambia where the livelihoods of our people are improved.
The 2024 Budget and those that will 1 follow do just that: to create conditions for stronger and sustained economic expansion and job creation.

is, investment, and productivity, 8.

Madam, the focus of the 2024 Budget to promote therefore, economic growth through enhanced increase private sector production and improve public service delivery.

It is in this context that the theme for the 2024 ‘‘Unlocking Economic Budget is this Budget, Potential”.
Through therefore, the Government makes a commitment to provide the policy framework, resources and incentives to unlock the economic potential of our country.

I 9.

Madam Speaker, my Address this afternoon is structured in four parts.

Part covers macroeconomic developments in 2023.

Part II outlines macroeconomic objectives and policies for the 2024 Fiscal Year.

Part III provides estimates of revenue and expenditure along with borrowing requirements for 2024.

In Part IV, I conclude my Address.


Part I MACROECONOMIC OVERVIEW FOR 2023 Global Economic Developments 10.

Madam Speaker, as a way of starting, let me briefly review the 2 macroeconomic situation in 2023.

At the global level, economic growth is expected to slow down to 3.0 percent in 2023 from 3.5 percent recorded in 2022.
Sustained tightening of monetary policy in advanced economies, adverse effects of climate change, and the impact of the prolonged Russia- Ukraine war are largely responsible for the subdued economic growth.

11.

Madam, the consequence of the weak global economy is that during the first nine months of 2023, commodity prices trended downwards.

Copper prices declined to an average of US $8,589 per metric tonne from US $9,084 during the same period in 2022.
Crude oil prices also reduced to an average of US $82.8 per barrel from US $104.6.

Domestic Economic Developments Economic Growth 12.

Madam Speaker, our economy is projected to grow by 2.7 percent in 2023 compared to 5.2 percent in 2022.

The slowdown is mainly attributed to reduced production in the mining sector on account of operational challenges and flooding in some of the major mines.

13.
13.

Madam, notwithstanding slowdown prospects positive with the this year, the medium-term are resolution of in growth the in challenges in the mining sector.

Growth is, therefore, expected to pick-up in 2024 and over the medium-term.

Inflation 14.

Madam Speaker, inflation has edged upwards to 12.0 percent in September 2023 from 9.9 percent in December 2022.
This has largely been driven by increases in prices of maize grain and meat products as well as the depreciation of the Kwacha against the United States dollar.

the 15.

Madam, Kwacha depreciated by 10.9 percent against the US dollar to K20.05 per US dollar between January and August this year.

The depreciation of the Kwacha was mainly on account of strong demand while inflows, especially from the mining sector, reduced.

16.
16.

Madam Speaker, in response to the recent rise in inflation, the Bank of Zambia has raised the policy rate by 100 basis points to 10.0 percent.

In addition, to address volatility in the exchange rate as well as safeguard the stability of foreign exchange market, the statutory reserve ratio was increased by 250 basis points to 11.5 percent in February 2023. the Budget Performance 17.

Madam performance Speaker, budget in 2023 has been favourable and broadly in line with the projection.
Total expenditure for the year is projected at K157.5 billion, 5.8 percent below the K167.3 billion which this House approved.

Notable expenses transfer, include dismantling of arrears, infrastructure development, and the Constituency Development Fund.

social cash respect 18.

Madam, with to revenues and grants, these are projected at K119.1 billion, 5 percent above the target of K113.3 billion.
Revenue collections are projected to be above target while borrowing, at K31.1 billion, will be lower than the target of K40.9 billion.

19.

Madam Speaker, arising from the expenditure, revenue and financing outturn, the fiscal deficit is projected at 5.8 percent of GDP, which will be below the target of 7.7 percent.

The lower budget deficit outturn is Government’s of reflective commitment to fiscal discipline.

20.
20.

Madam, I am happy and proud to report that in the two years that this Administration has been in office, fiscal discipline has been very high.

As I just reported, revenues and expenditures are nearly spot on as authorised by this august House.

Moreover, deviations on expenditures seen in many years before, hardly exist while critical areas like 3 education, health, and CDF are fully funded as appropriated by this House.

Debt Position external debt 21.


Madam Speaker, the central stock, Government excluding publicly guaranteed external debt, as at end-June 2023 increased marginally by 0.8 percent to US $14.07 billion from US $13.96 billion at end- December 2022.

The increase was largely on account of disbursements by multilateral creditors.

Total publicly guaranteed external debt, however, declined by 1.9 percent to US $1.43 billion at end-June 2023 from US $1.45 billion at end-December 2022.

22.
22.

Madam, the stock of Treasury bills and Government bonds stood at K213.9 billion as at end-June 2023 from K210.0 billion as at end- December 2022, an increase of 1.9 percent.

representing 23.

Madam Speaker, the stock of domestic arrears marginally increased by 0.2 percent to K77.8 billion as at end-June 2023 from K77.6 billion as at end-December 2022.

Financial Sector Performance 24.


Madam Speaker, growth in lending by the banking sector slowed down to 6.4 percent in the first seven months of 2023 compared to a growth the of 11.9 percent recorded in corresponding period in 2022.

The slowdown was due reduced borrowing by Government.

Growth in lending to the private sector remained steady at 15.0 percent.

to 25.

Madam, the overall financial performance and condition of the banking sector remains satisfactory.
The capital position was adequate and earnings performance was strong.

Asset quality was satisfactory, reflected in a lower non-performing loans ratio of 4.4 percent at end-August 2023, below the 10.0 percent prudential benchmark.

risk Speaker, 26.

Madam the performance of the non-bank financial institutions was also satisfactory.

The capital position earnings performance, liquidity management and sensitivity to market remained satisfactory.
Asset quality was rated fair with the ratio loans improving to 12.1 percent at end-June 2023 from 13.0 percent at end-June 2022, but the remained prudential limit of 10.0 percent.

non-performing above of 27.

Madam, emerging financial technologies and digitalization has the immense benefits brought financial sector such as ease of accessing services.
For instance, in the first half of the year, the value of mobile payments grew by 38.0 percent to K199.5 billion while the financial to 4 volume of transactions grew by 7.1 percent to 976.4 million.

28.

Madam Speaker, with increased usage of digital financial services, there is increasing threat of cyberattacks, which may compromise the stability of the sector.
To mitigate this threat and preserve the integrity of the financial sector, the Bank of Zambia issued the Risk Cyber Management Guidelines the financial service and payment systems providers in May this year.

Information and to External Sector Performance 29.

Madam Speaker, in the first half of 2023, the merchandise trade surplus narrowed to US $200 million from US $1.7 billion during the same period in 2022.

This outturn was due to higher imports while exports declined.
Imports rose by 23.0 percent to US $5.2 billion driven by capital and consumer goods.

In contrast, export earnings declined by 11.6 percent to US $5.3 billion.

This was largely due to reduced copper export earnings on account of lower export volumes and prices.

30.

Madam, as at end-August 2023, gross international reserves amounted to US $2.9 billion, representing 3.2 months of import cover.

5 Part II MACROECONOMIC OBJECTIVES the constraints facing 31.
Madam Speaker, to unlock Zambia’s economic potential, we must address the economy, especially in the mining, energy, manufacturing and agriculture sectors.

These include low production and productivity, low diversification and industrialisation, low private sector investment, low access to affordable finance and low citizen participation.

32.

Madam, the Eighth National Development Plan sets out strategies to address these bottlenecks and to take the country to a higher growth position.
In this regard, Government will pursue the macroeconomic following objectives in 2024: a) Attain a real GDP growth rate of at least 4.8 percent; b) Reduce inflation to the 6-8 percent medium-term target band; c) Maintain international reserves above 3.0 months of import cover; d) Increase domestic revenue to at least 22.0 percent of GDP; e) Reduce the fiscal deficit to 4.8 percent of GDP; and f) Limit domestic borrowing to no more than 2.5 percent of GDP.

POLICIES FOR 2024 Speaker, 33.


Madam the development strategy for the country as outlined the Eighth National Development Plan is premised on the following key thematic areas: in a) Economic Transformation and Job Creation; b) Human and Social Development; c) Environmental Sustainability; and d) Good Governance Environment.

34.

Madam, I will now present the specific policies in these four strategic development areas.

A.

ECONOMIC TRANSFORMATION AND JOB CREATION 35.


Madam Speaker, the New Dawn Administration has made progress in stabilising the economy over the last two years.

This gives us a basis upon which we can achieve higher, sustainable and more inclusive the gains growth.

Notwithstanding made, we have a number of challenges, and particularly production low productivity in the major sectors of the economy.

36.

Madam, let me now present the key interventions that will support economic job creation.
transformation and Agriculture, Livestock and Fisheries 37.

Madam Speaker, over the past years, crop and livestock production has generally been below potential.

This has been due to a number of factors such as adverse effects of climate change, high cost of inputs, inadequate finance, unaffordable irrigation and other agricultural support infrastructure, poor livestock and crop management practices, as well as inadequate mechanisation.

to according 38.
to according 38.

Madam, the 2022/2023 Crop Forecast Survey, the country produced 3.2 million metric tonnes of maize.

This means that the country produced enough food for this Notwithstanding itself.

performance, our several neighbouring countries experienced inadequate harvest.

Demand for maize from the region has, therefore, led to and higher maize grain prices subsequently escalation in mealie meal prices.

of 39.
of 39.

Madam Speaker, traders from countries with maize shortages started buying maize from Zambia even when 6 it was still green in the fields and they offered our farmers high prices.

Higher maize prices for our farmers is of course good for them.

For many years, our farmers have been crying for better prices.

Many of them sold their maize across borders or abandoned growing of maize and shifted to soya beans for better returns.
The recently released data on poverty shows that people engaged in farming are among those where the incidence of poverty is higher.

Improved prices for their maize will help to reduce their poverty.

under 40.

Madam, the circumstances, Government had no option but to raise the buying price of maize or else face a situation where most of the maize grown in Zambia would be exported by traders into the region, thereby causing even higher shortages.
Better prices for maize, induced by higher regional demand, however, present an opportunity for our farmers to expand production, increase household income, reduce poverty, and earn the country the much-needed foreign exchange.

41.

Madam Speaker, Government recognises that some of our citizens have been hit hard by the rise in mealie meal prices.

To mitigate the escalation in prices of mealie meal, Government is implementing a number of measures to boost supply and stabilise the price.

42.
42.

Madam, we are implementing measures to lower the cost of producing maize.

Key among these is the cost of fertiliser, which has come down to US $865 per metric tonne from about US $1,200 in the last season.

Another measure Government is implementing is to come to an understanding with millers for them to reduce the cost of mealie meal if they buy maize from stocks held by the Food Reserve Agency.
For millers using the Food Reserve Agency maize, there is no justification whatsoever for their mealie meal to be as high as what we see sometimes.

Finally, Food Reserve Agency will be releasing stocks of maize for community purchases so that citizens can have a choice of milling their maize using cheap methods like hammer mills.

I to that indicated 43.

Madam Speaker, in my last the Address, Comprehensive Agriculture Transformation Support Programme would be developed improve production.
I am happy to report that good progress has been made and the Programme will be launched before the end of this year.

The Programme will include extension service support, access irrigation development, support to value addition as well as storage and logistics.

finance, to 44.

Madam, is developing farm blocks, which are Government 7 high areas where technology agriculture will be deployed to produce large stocks for domestic consumption and for processing into agro-export goods.
It is from the farm blocks where technology-based farming can produce large stocks competitively and be able to export to the world at large.

blocks.

addition, 45.

Madam Speaker, to increase accessibility within farm blocks, Government will, in 2024, construct 300 kilometres of roads in Nansanga, Luena and Shikabeta farm blocks.
In the same vein, Government will also embark on the construction of 10 bridges to enhance connectivity in the farm 200 In kilometres of powerlines will be constructed in Luena, Luswishi and Shikabeta farm blocks to facilitate the installation of power to farms.

Further, more investments will be made in irrigation reduce infrastructure dependence on rain-fed agriculture and to ensure farmers are able to plant throughout the year.

The ground plans for all these interventions have been completed.

to 46.
to 46.

Madam, to adapt to the adverse effects of climate change and build resilience, Government will continue implementing agricultural smart in collaboration with technologies Cooperating Partners.

These include conservation water harvesting, adaptive research, on-farm agriculture, 8 programmes, research agricultural insurance, as well as early warning systems.

in Speaker, identification 47.


Madam the livestock sub-sector, Government will unlock potential by improving animal and health, animal traceability as well as livestock breeding programmes.

The disease surveillance and response system will be enhanced as regional veterinary laboratories in Chipata, Choma, Isoka, Kasama, Mongu, Ndola and Solwezi become operational.

In addition, the Central Veterinary Research Institute will be rehabilitated.

Lusaka, is being piloted 48.


Madam, animal identification and traceability are critical to livestock trade, disease control and prevention of stock theft.

To enhance animal traceability, and identification Government has developed an online system which in Northwestern, Central, Southern, and Western Provinces.

The system will enable to register, search and identify animals.

The platform will be linked to a Short Messaging System for ease of access by animal owners.
So far, 68,518 livestock farmers with 411,108 cattle have been captured.

It is envisaged that the cattle population of approximately 5 million will be captured under this system by December 2024. the public 49.

Madam Speaker, to strengthen legal reforms on animal identification and traceability, Government will bring to this House the Animal Identification and Traceability Bill in this session.

a 50.
a 50.

Madam, is Government implementing community-based livestock breeding programme through a pass-on scheme to support livestock farmers with high quality breeding stock.

So far, 225,000 livestock have been distributed to 36,000 households countrywide.

In 2024, a total of 12,000 livestock farmers will benefit under this programme.

implementing 51.

Madam Speaker, to increase livestock carrying capacity and build climate resilience, Government will continue forage and pasture production.
As at end-June this year, more than 19,000 hectares of degraded rangelands was over-sown, out of the target of 30,000, bringing the total over-sown rangeland to 99,000 hectares.

This has improved livestock nutrition and assured all year-round availability of pasture and fodder.

52.

Madam, to enhance production and productivity in the fisheries sub- sector, Government is promoting the establishment of fish hatcheries.
In 2024, Government will establish 3 hatcheries in 3 aquaculture parks in Kasempa, Mushindamo and Samfya Districts in addition to the 18 hatcheries already established.

This will increase fingerling production to 433.4 million in 2024 from the current 302.0 million.

through 53.

Madam Speaker, Government will also promote sustainable capture enforcement of fisheries fishing ban and enhanced surveillance of our water bodies.
The interventions under aqua and capture fisheries are aimed at reducing the national fish deficit to 52,000 metric tonnes in 2024 from 74,000 in 2023. in 54.

Madam, to unlock the potential of the agriculture sector and seize export opportunities while ensuring domestic food security, Government, working collaboration with Cooperating Partners, will establish an agriculture credit window.
This will support small scale farmers, emergent farmers, and public service workers with affordable financing to procure inputs, irrigation systems, among others.

equipment and Tourism 55.

Madam Speaker, last year, Government announced a unilateral waiver of tourist visa requirements for citizens from selected countries which has resulted in a boost of tourist arrivals.
In the first half of 2023, international tourist arrivals increased by 22.0 percent to 605,650 tourists from 9 496,456 recorded in the corresponding period in 2022. the sector 56.

Madam, has recovered as evidenced by increased room occupancy rates.

In the first half of 2023, the room occupancy rate averaged 70 percent compared to 40 percent during the same period in 2022.

Similarly, the length of stay by tourists increased to an average of 4 days in 2023 from 3 days in 2022.

57.
57.

Madam Speaker, visits to national parks, waterfalls and heritage sites increased by 34.3 percent to 213,528 in the first half of the year compared to 159,003 over the same period last year.

This increase was partly attributed to a rise in domestic tourism.

Other factors that have helped to boost tourist arrivals are the hosting of local and international meetings and enhanced tourism marketing.

58.
58.

Madam, to accurately determine trade in tourism services, Government will establish a tourism satellite account to measure the contribution of tourism to the economy.

This will help with policy inform decision-making.

formulation and 59.

Madam Speaker, last year, I promised to secure resources from to develop Cooperating Partners tourism facilitation infrastructure at Kasaba Bay, Liuwa National Park, and 10 to the source of the Zambezi river.
I am happy to report that we have now secured US $100 million under the Green, Resilient and Transformational Tourism Development Project.

These improve resources will help accessibility and diversity of tourism product offerings to attract more tourists and increase length of stay.

Other developments will include the improvement road connectivity to south west tourism circuit of Liuwa, Sioma-Ngwezi, Livingstone, Lower Zambezi, and Kafue National Parks.

and air of to 60.
and air of to 60.

Madam, support diversification of tourism products, Government will undertake reforms to enhance wildlife conservation and management.

Government will also tourism sustainable promote tourism development include products such as cultural tourism, avitourism, health tourism and sports tourism.

In addition, Government will continue to support the hosting of meetings, conferences, exhibitions and incentive travel.

to Mining 61.
to Mining 61.

Madam Speaker, in the first half of 2023, production of copper, emeralds and manganese declined mainly due to challenges.

This was operational compounded by flooding and low ore grades at some major mines.

62.

Madam, with the envisaged resolution of challenges at Mopani and Konkola Copper Mines as well as the possible coming on board of new mines, the mining sector is expected to boost production in 2024.
This will support our goal of achieving the 3 million metric tonnes of copper production per annum by 2032.

63.

Madam Speaker, the attractive tax policy regime is already yielding benefits.

This is evidenced by the increase in committed investments in the sector to US $3.4 billion in 2023 from US $1.7 billion in 2022.

First Quantum Minerals since commenced commercial production of in Kalumbila District.

nickel Approximately 35,000 metric tonnes of nickel is expected to be produced per annum.
The Mine is poised to be the largest producer of nickel in Africa and will strategically position the country in the global transition to clean energy.

has 64.

Madam, let me address the concerns raised by some sections of society that despite the favourable tax regime given to the mining sector, copper production has reduced.

The reduction is not related to taxation, but rather to operational challenges at some mines.

65.
65.

Madam Speaker, it must be appreciated the mining sector takes time to yield investment that in and then make is because mining results.

This companies must first evaluate the investment climate in the country, then begin to explore or hunt for the minerals, the investments in the mines.

As of now, Madam Speaker, the change in the tax policies that we made is without any doubt working.

It has induced a lot of interest and people are busy doing explorations.
On the information we have, some spectacular announcements of really big mines will be made at an appropriate time.

the basis of around resolution to attract 66.

Madam, targeted investment and accelerate mineral exploration the projects country, Government will undertake a countrywide high geophysical 2024, In survey.

Government will carry out aerial surveys in Copperbelt, Lusaka, Northwestern, Southern, and Western Provinces as well as parts of Central geological Accurate Province.
information the to is fundamental achievement of the 3 million metric tonnes of copper production target by 2032.

67.

Madam Speaker, Government has declared all minerals as strategic for the country’s economic prosperity.

In this regard, Government will enhance the exploration, exploitation and trade of these mineral resources.

So far, preliminary geological surveys for 11 lithium in Mapatizya and sugilite in Chembe have been conducted.

in the mining 68.
in the mining 68.

Madam, to enhance regulatory oversight sector, Government will bring a Bill in this session to operationalise the Minerals Regulation The Commission will address, among others, issues pertaining to production reporting, mineral content analysis, illegal mining and trade of minerals.

Commission.

illicit Manufacturing Speaker, 69.

Madam the manufacturing sector has continued to record steady progress, evidenced by the 4.7 percent growth rate in 2022.
Indeed, manufacturing is a sector where we have seen excellent developments.

Here are a few examples.

Firstly, a few years ago, Zambia was fully dependant on imported fertiliser.

Through a new investment, the country will not just be self-sufficient, but will be a net exporter of fertiliser.

Secondly, Zambia used to imported be ceramic products.

Today, we are exporting these products.

totally dependent on the 70.


Madam, Zambia Development Agency has this year received firm indications for new investments amounting to over US $5.0 billion.

The areas of interest have been across sectors but mostly in electric 12 vehicle batteries, renewable energy in wind and solar, pharmaceutical, and electric motorcycle assembly.

This makes investment prospects over the medium term very bright.

We are these positive investments will be actualized and thousands of jobs will be created.
that a number of 71.

Madam Speaker, following the recent visit by the President to China, further interest has been generated.

Areas of interest include the assembly of mobile phones, assembly of electric motorcycles, and manufacture of pharmaceutical products and copper cables.

Since the return of the President from China, delegations of Chinese investors have already started arriving in the country to advance these projects.

72.
72.

Madam, adding value to our raw materials remains a critical catalyst to grow our economy and create jobs.

Priority will be on food and beverages, wood and wood products, leather and leather products, metallic and non- metallic minerals, and pharmaceutical products.

textiles, Speaker, 73.

Madam notable the in progress has been made establishment of Multi-Facility Economic Zones or simply called MFEZs.
For instance, the Lusaka South MFEZ has a total of 52 investors with total investment commitment of US $864.5 million.

Of these, 22 companies are currently operating with total investment of US $541.4 million and 12,558 jobs have been created while 30 companies are in the construction phase with a total investment, so far, of US $323.1 million and are expected to generate an additional 7,274 jobs.

74.
74.

Madam, I am happy that our local entrepreneurs are responding to the incentives that we are providing in the MFEZs.

Out of 30 companies in the local.

construction phase, 23 are Similarly, out of 22 companies in the operational phase, 7 are local.

employed 75.

Madam Speaker, we must continue to draw upon and learn from the experiences of countries that have special successfully economic zones to attract more investment.
As we all know, most of than these countries were poorer Zambia at independence.

Today, they are far ahead and one of the tools that propelled them to wealth are special economic zones like our MFEZs.

76.

Madam, whereas the current tax incentives in the MFEZs are acceptable, the zones still suffer from other their inadequacies which attractiveness.
the To weaknesses, the following measures will be introduced by the end of first quarter 2024: reduce address 13 • Firstly, the land rates levied by Local Authorities will be harmonised and reduced.

There has been the mistaken belief that Councils can earn a lot of money by overcharging on rates.
In reality, they have failed rates because to earn investors for cheaper alternative locations; the look • Secondly, it the Employment Code Act, 2019 is a ‘job killer’ imposes onerous because financial and obligations conditions on employers.

These provisions will be reviewed generally, but especially so inside the MFEZs where we must aim to drastically reduce the burden they impose on employers.
Further, a pay policy to workers based on agreed principles of more pay for higher productivity will be allowed; and • Thirdly, immigration and work permit requirements have been onerous.

It takes too long to have these permits issued and because of that, corruption has been the MFEZs, therefore, there will be changes.

The proposal is that in the MFEZs, an enterprise will automatically be granted a quota for expatriate employees, perpetuated.
In at whatever level, whose ratio will be based on the total number of jobs created.

The higher jobs the number of created, the higher the number of expatriates allowed and vice- versa.

Security clearance on proposed individual expatriates will continue to apply.

77.

Madam Speaker, for years, we have held onto a mistaken belief that the stricter a country is in permitting expatriate employees, the higher the number of local people.
jobs for Experience from all over the world in actual fact points to the very opposite result.

live experiment 78.

Madam, by easing conditions in the MFEZs to the best practice in the world, our country will in effect inside conduct a secluded areas without exposing the whole country to such conditions.
If, as we hope, the liberal conditions in the MFEZs prove more effective in attracting investments and expand job creation, then we shall in later phases work liberal towards applying approach to the rest of the country.

the it Speaker, established 79.

Madam is Government’s desire that more MFEZs are faster industrialisation.

Since Government does not have the money to finance the MFEZs, we shall merely provide fiscal for incentives so that the private sector can develop them.
Small and Medium Enterprise Development 80.

Madam Speaker, access to affordable finance continues to be a constraint to SME growth.

To address this, Government is providing funds to targeted groups through a number of empowerment programmes such as Citizens Economic Empowerment Commission, Women Empowerment, Constituency Development Fund, and the Youth Empowerment.
For instance, as at end-August 2023, the Citizens Economic Empowerment Commission disbursed K660 million to over 77,000 beneficiaries who included marketeers, persons disabilities, living with cooperatives, women and the youth.

to 81.

Madam, to further facilitate access to affordable loans by SMEs, the Government increased has allocation the Zambia Credit Guarantee Scheme.
The Bank of Zambia, leveraging on private sector participation, will complement the existing Scheme by rolling out another credit guarantee scheme in 2024.

82.

Madam Speaker, to accelerate micro, small and medium enterprise development, Government has been constructing industrial yards.

To this in four were commissioned end, 14 Chipata, Kasama, Mansa, and Mongu earlier this year.

An additional three are earmarked for commissioning in Kitwe, Lusaka, and Ndola before the end of this year.
In 2024, Government will construct industrial yards in Chinsali, Choma, and Kabwe.

The setting up of industrial yards will also create employment opportunities especially for the women and youth.

Energy of enabler 83.

Madam Speaker, energy is a critical economic development as it cuts across various socioeconomic activities.

In this regard, continue Government will to implement that promote reforms efficiency and growth in the sector.

of 84.
of 84.

Madam, to mitigate the high petroleum transporting cost products, Government converted TAZAMA Pipeline from a petroleum feedstock to a low sulphur diesel carrier.

As a result, the pump price of diesel reduced to below that of petrol in April 2023.

Had we not done the conversion of the pipeline, diesel pump prices would, right now, be higher by as much as 19 percent.
I am aware that fuel prices are high presently, but this has to do with the rise in the price of the commodity where we buy it from and the depreciation of the exchange rate.

85.

Madam Speaker, Government has now developed regulations to enable players in the sector to have third party access to the TAZAMA Pipeline.

This will enhance competition among the suppliers, which will ultimately benefit consumers.
I call upon the private sector to take advantage of the open access and participate in the supply of petroleum products.

Further, I call upon the private sector to invest in a new pipeline to increase the volume of fuel that can be imported through the pipeline.

for the 86.

Madam, I hear of some citizens calling re-introduction of subsidies on fuel.

If adopted, this of that we must cut course means expenditure elsewhere.
In practical terms, it may mean abandoning the policy of free education, or failing to hire teachers or doing away with CDF.

I don’t believe that such choices would be wise.

increase 87.

Madam Speaker, to enhance growth of the electricity sub-sector, Government is implementing measures to electricity generation capacity which currently stands at 3,790 megawatts.

This will be done through the provision of incentives to attract investment in power generation, which I will announce later in my Address.
Government is also promoting the use of alternative renewable energy 15 sources to make the energy sector more resilient.

88.

Madam, to increase access to clean, reliable and affordable energy in rural areas, Government will continue to support the Rural Electrification Programme.

Government, through the Rural Authority, Grid-Tied embarked Electrification Projects and 19 Solar Mini-Grid Projects in 2023.
Works on these Projects have since commenced and once to completed, electricity in the rural areas will be improved.

Electrification 62 access on Transport and Logistics is vital for unlocking 89.

Madam Speaker, the transport sector the economic potential and the smooth economy.

The of running development, and rehabilitation of our transport networks, therefore, remain key in our economic transformation and job creation agenda.

maintenance the 90.
maintenance the 90.

Madam, the aviation sector in Zambia has seen remarkable recovery following the ravaging effects of the Covid-19 pandemic on global air transportation.

As at end-August 2023, about 1.3 million passengers were recorded, a recovery of 106 percent from the pre-Covid-19 period at end- August 2019.
Growth in the sector has been spurred by clear Government 16 policies which include the lifting of visa requirements in key tourist markets as well as opening of new routes such as Lusaka–Maputo and Lusaka–Cape Town.

On the domestic front, traffic has recovered and exceeded the pre-Covid- 19 level by 33 percent.

91.

Madam Speaker, our country is vast and, therefore, requires huge sums of money to build and maintain roads.
Unfortunately, we don’t have the money for all the roads at once, more so given the debt left behind by the previous Administration.

This means that our room for borrowing is highly limited.

Nevertheless, the New Dawn Administration has used its ingenuity to utilise the Public Private Partnership mode of financing.

In this regard, I am happy to report that the upgrading of the dual road Lusaka-Ndola carriageway has commenced.
The Project will include the rehabilitation of Masangano-Fisenge-Luanshya roads.

to a 92.

Madam, to further demonstrate the commitment of the New Dawn Administration to the PPP mode of financing, I am glad to report to this august House that the rehabilitation of the Chingola-Kasumbalesa road started this year.

The works have since reached 70 percent and will be completed before the end of this year.
Everyone who has been on the Chingola-Kasumbalesa road has been impressed with its quality and yet its cost per kilometre is nearly half of what was previously being paid.

the roads which are of no commercial interest to the private sector.

road will 93.

Madam Speaker, under the PPP mode, the concession agreement for the Lumwana-Kambimba road has been connect signed.

This Lumwana with Kolwezi in Democratic Republic of the Congo.
The concession agreement for Katete-Chanida road will be signed in October this year.

In addition, negotiations for the Ndola- and Mufulira- Sakania-Mufulira Mokambo roads will be concluded before the end of October this year.

To complement the roads linking with Democratic Republic of the Congo, Government will also construct and at upgrade Sakania, Mokambo, and Kipushi under PPP.
With all these PPP interventions, Zambia will have more connecting points with Democratic Republic of the Congo and thereby easing congestion at Kasumbalesa border.

infrastructure border 94.

Madam, in 2024, for the very first time, we will implement at least 5 PPPs in the road sector in one year.

95.

Madam Speaker, not every road can be financed through PPP because investors prefer roads where there is heavy traffic to enable them recoup their This investments.
notwithstanding, PPP remains very useful for us, as the limited resources of Government can then be deployed to and rehabilitate 96.

Madam, Government will continue with the construction and rehabilitation of rural roads through the Improved Rural Connectivity Project.

to construct, The Project targets maintain 4,300 kilometres of feeder roads across the country.

So far, 1,700 kilometres of feeder roads have been rehabilitated is being and routine maintenance undertaken.
A total of 500 kilometres of feeder roads will be rehabilitated in Improved Rural 2024 under Connectivity Project.

the 97.

Madam Speaker, a further 700 kilometres of feeder roads will be constructed by the Zambia National Service and the Ministry of Local Government and Rural Development in 2024. through to note 98.

Madam, the Constituency Development Fund, I am that a number of happy road constituencies have acquired construction equipment.
With this equipment, we expect an additional 1,000 kilometres of feeder roads to be rehabilitated in 2024.

Madam, CDF is a game changer respects, including rural roads.

in many 99.

Madam Speaker, taking into account all the works being undertaken 17 of roads in the different programmes, the total stretch under feeder construction will be an unprecedented 2,200 kilometres in one year.
Going forward, and with the procurement of the by most equipment constituencies, roads, especially in rural areas, should be a thing of the past.

impassable of from will 100.

Madam, apart feeder roads, also Government rehabilitate and upgrade trunk and district roads.

These will include Chipata-Lundazi, Mansa-Nchelenge, and Monze-Niko, Mpika-Chinsali Tateyoyo-Katunda roads.

101.

Madam Speaker, is Dawn Administration working Government.

the New indeed a 102.


Madam, to reduce clearance time at our borders, Government will implement electronic data exchange for customs and make pre-clearance of goods mandatory as well as introduce a Single Payment Point to collect statutory fees on behalf of other border agencies.

In line with our desire to reduce clearance time, operating hours at Katima Mulilo Border Post were extended to 24-hours in August this year.

103.
103.

Madam Speaker, in the air transport subsector, the construction and upgrading of airport infrastructure remains a priority for Government.

This year, upgrading and rehabilitation of Kasama Airport has been completed.

In 2024, Government will commence the construction of airports at Kasaba Bay, Chinsali and Choma.

Information and Communication Technology 104.

Madam Speaker, to digitalise the economy, Government remains to providing universal committed and mobile internet access to connectivity.
regard, In Government is this year constructing 139 communication towers to increase the network coverage to 92 percent from 78 percent in 2020.

In 2024, an be additional constructed.

towers will 169 this 105.

Madam, in collaboration with the private sector, Government will leverage on the use of a mix of technologies such as satellite and fibre connectivity to reach the unserved and underserved areas.

Further, Digital be Transformation Centres will established in rural areas.

106.
106.

Madam Speaker, to improve the promote environment, business seamless access to public services and enhance public service delivery, Government has been migrating public services to an online platform called ZamPortal which can be accessed on 18 www.zamportal.gov.zm.

This is part of the Government Service Bus and Payment Gateway.

Services that can be accessed through this platform include payment for motor vehicle road tax and company registration.

107.
107.

Madam, Government has identified at least 1,500 services that need to be migrated to the ZamPortal.

So far, 280 services are being offered online.

Government will, in 2024, increase the number of services on the ZamPortal to 382.

108.

Madam Speaker, the use of the ZamPortal has reduced transaction costs and queues in accessing public services as well as minimised revenue leakages.
In addition, the Portal has cut down on assisted the to bureaucracy, transparency improved and accountability thereby reducing opportunities for corruption when accessing public services.

recorded 109.

Madam, the migration of public services, which began in 2020, has so 1.6 million over far transactions valued at approximately K2.0 billion.
Nonetheless, the uptake the remains consumption services, Government will enhance sensitisation, train public officers and increase internet access in the unserved and underserved areas.

low.

To of increase online 19 110.

Madam Speaker, to increase access to online Government services, especially in rural areas, Government will encourage local entrepreneurs and institutions such as schools and clinics to provide access to online public services to the local communities at a fee.
This will create income generating and employment opportunities for local communities.

services, 111.

Madam, to increase access to investment will digital continue in connectivity up to the last mile.

To achieve this, Government will leverage on the extensive national coverage of fibre networks to reach the unserved and underserved districts.

Science, Technology and Innovation transfer technology institutions innovation hubs 112.
Madam Speaker, to strengthen scientific and industrial research and enhance and adoption, Government will create an to promote enabling environment academic collaboration among and institutions, produce research commercially viable products relevant to our economic transformation agenda.

the The measures will include construction and rehabilitation of infrastructure, provision of equipment, and recruitment of more researchers at the National Institute for Scientific and Industrial Research.
In addition, 5 innovation hubs will be constructed as to well as construction of centres of excellence at the University of Zambia and Copperbelt University.

raw 113.

Madam, Government will also operationalize the National Ground in Chibombo Receiving Station District.

The Station will be able to download centralised remote sensing earth observation satellite data that will be used by different the stakeholders.
This will reduce by incurred expenditure current in procuring different stakeholders duplicate spatial data from other countries.

This technology will enable the use of artificial intelligence and will be useful in the application of precision agriculture, mineral exploration, and natural resource management.

B.

HUMAN AND SOCIAL DEVELOPMENT Education and Skills Development commenced 114.

Madam Speaker, Government will continue to increase access to quality education through infrastructure development.
Over the last decade, Government the construction of 115 secondary schools whose construction had stalled.

During the past two years, Government has been allocating money to complete them.

We have since completed 69 schools while the remaining 46 are still and will be under construction an construct completed in 2025.

Government targets to additional 202 secondary schools.
Of these, 82 are under and will be completed in 2024 while construction of the remaining 120 secondary schools will commence in 2024. construction to in addition 115.

Madam, the construction of schools, Government has been increasing the capacity of existing the construction of classrooms.

As at end- August 2023, a total of 3,132 classrooms were built under the CDF.

through schools 116.

Madam Speaker, access to online educational services is mainly along the line of rail.
Leveraging on the extensive national coverage of fibre networks, Government will roll out the e-learning management system aimed at ensuring easy access to online teaching and learning materials across the country.

In addition, Government is Cooperating with collaborating Partners internet improve to connectivity in rural schools.

to teaching 117.

Madam, to improve the quality education, Government of has teachers and recruit continued provide learning materials.
When I presented the 2023 Budget to this House last year, we promised to employ more teachers.

I am glad to report that the process for hiring 4,500 teachers has begun.

That is not and 20 even the end Madam Speaker.

In 2024, another 4,200 teachers and 1,200 non- teaching staff will be recruited.

118.

Madam Speaker, Government has shown its commitment to the education sector through these large expenditures.
Government wishes to caution education management staff to enforce good behaviour and discipline in schools.

In particular, the practice of teachers shunning rural places must end.

district our 119.

Madam, to improve the learning environment, we committed that no learner should sit on the floor.

Progress has been made in the procurement of school desks.

As at end-August 2023, over 442,000 desks had been procured mostly using CDF.

Our target is to procure 1 million desks.


All these desks are being manufactured by our local entrepreneurs respective communities, thereby creating jobs and increasing income for our people.

the in 120.

Madam Speaker, Government will continue to prioritise the provision of quality and relevant vocational skills by equipping training centres with modern equipment.

This will align skills of TEVET graduates to industry requirements.

121.
121.

Madam, through enhanced CDF provision, skilled builders have become relatively scarce especially in rural 21 areas because the number of building jobs is on the rise.

It was in anticipation of this shortage that we urged youths to step forward to be trained in building skills.

After they have been trained, the youths will undergo apprenticeship until they have enough skills to be awarded contracts in their own rights.

Youths!

This facility is yours and it is still underutilised!

Health 122.
Health 122.

Madam Speaker, Government will continue to prioritise the provision of quality health care services.

This will be achieved through the development of infrastructure, recruitment of health personnel as well as provision of medicines and medical supplies.

4 mini-hospitals to Government 123.

Madam, improve health has infrastructure, completed the construction of 12 mini- hospitals out of the planned 16 this year.
This brings the total number of completed mini-hospitals under Phase I to 111 out of the target of 115.

The in remaining Lufwanyama, Lusaka, Mpongwe, and Mufumbwe Districts will be completed in 2024.

In addition, Government has this year constructed 62 maternity annexes, of which 19 were financed from the Constituency Development In 2024, Government will Fund.

construct annexes.

30 maternity Further, the construction of 135 mini- hospitals under Phase II will commence across the country.
health personnel will be recruited in 2024. that 124.

Madam Speaker, Government the supply of acknowledges essential medicines and medical supplies has been inadequate.

Let me assure the general public that we are working on ensuring that essential medicines and medical supplies are available in our health facilities.

To this end, we have adopted a hybrid supply chain system that relies on both the health centre kit and bulk source supply systems.
We have secured 42,000 health centre kits expected to last until mid-2024.

To ensure a stable supply, Government has commenced the procurement of the next batch.

Under the bulk source supply system, the first batch is expected before the end of this year.

Government 125.

Madam, is collaborating with stakeholders to establish a Local Pharmaceuticals Manufacturing Strategy.
This will promote domestic production of the pharmaceuticals and enhance resilience of the supply chain in the country and contribute to job creation.

Speaker, 126.

Madam the recruitment of 3,000 health personnel has commenced and is expected to be completed by the end of this year.

This fulfils the promise I made in my 2023 Budget Address.

An additional 4,000 in 2024, commence 127.


Madam, to increase access to cancer treatment locally, Government will, the construction of cancer treatment centres in Livingstone and Ndola.

This will decongest the Cancer Diseases Hospital in Lusaka and reduce the cost of sending abroad.

Further, Government will upgrade and radiotherapy infrastructure at the Cancer Diseases Hospital to improve the quality of service.

equipment patients cancer health 128.


Madam Speaker, to strengthen the care management information system, Government will scale up the implementation of the Electronic Health Record System to 3,000 health facilities in the next three years from the current 600.

The System will facilitate quick access to health records wherever and whenever they are required by health personnel.
In addition, the System will reduce the associated with transaction manual processing and provide critical information for planning and resource allocation.

costs Water and Sanitation 129.

Madam Speaker, as at end-June 2023, a total of 634 boreholes equipped with hand pumps were constructed.

We 22 expect over 1,000 boreholes to be completed by the end of this year.

These are distributed across the country and will benefit more than 52,000 households.
Further, 130 piped water schemes were constructed, benefiting more than 13,000 households.

and safe water 130.

Madam, to accelerate access to supply, clean Government will, in 2024, construct 1,374 boreholes and rehabilitate 1,270 boreholes across the country.

This will benefit 92,000 households.

131.

Madam Speaker, to improve water supply and sanitation services, Government has been implementing the Integrated Small Towns Project in Luapula, Muchinga, Northern and Western Provinces.
The Project is scheduled to be completed in 2024 and will benefit over 193,000 households.

I am happy to report that the Kafulafuta Water Supply Project, benefiting over 1 million people, will be completed by the end of this year.

Steady progress is also being made on the Kazungula Water Supply and Sanitation Project while works will commence this year on the Nkana Water Supply and Sanitation Project under Phase II.

Systems 132.
Systems 132.

Madam, to provide adequate sanitation services, 6,000 households will be connected to sewer networks.

The connections are being done by 23 utility companies in Chipata, Kalulushi, Kitwe, Lusaka, Mongu and Sesheke.

133.

Madam Speaker, in line with the directive by His Excellency, Mr. Hakainde Hichilema, President of the Republic of Zambia, Government will, in 2024, construct 168 waterborne sanitation facilities in public places and institutions across the country.

134.
134.

Madam, to harness water resources and ensure national water security, Government, this year, commenced the construction of 16 multi-purpose dams mostly in water stressed prone areas.

The dams are in Central, Eastern, Luapula, Northern, Northwestern, and Southern Provinces.

It is estimated that 15.7 million cubic meters of water will be harvested, benefitting over 22,000 households and approximately 1.7 million livestock.
In 2024, Government will commence the construction of 38 dams across the country.

135.

Madam Speaker, to enhance and prolong the lifespan of the existing dams, Government is rehabilitating 6 dams in Central, Eastern, Muchinga, Northern, and Western Provinces.

In 2024, six more dams will be rehabilitated in Eastern, and Southern Provinces.

Government will also continue to maintain dams across the implement country as well as programmes aimed at restoring and protecting water sources.
Social Protection 136.

Madam Speaker, the New is a caring Dawn Administration Government.

Over the past two years, we have demonstrated our commitment to social protection.

We will continue to the poor and vulnerable support through various social protection programmes.

Social cash transfers are timely.

We have reduced the waiting time for payment of pension benefits.

As promised, we have implemented the partial withdrawal of pension benefits under the National Pension Scheme Authority.

137.
137.

Madam, in my last Address to this august House, I promised to reduce the waiting period for pensioners under the Local Authorities Superannuation Fund.

I am happy to report that Government has cleared all pensioners from 2017 to 2021.

This has significantly reduced the waiting period to 1 year from 5 years.

By the end of 2024, the Fund is expected to be current on the payment of pension benefits.

as Speaker, towards uplifting 138.


Madam a commitment the livelihoods of the poor and vulnerable, Government increased the number of beneficiary households on Social Cash Transfer to 1,100,998 by end-June 2023 from 1,027,000 in 2022.

With regard to the Food Security Pack Programme, the number of beneficiary households has increased to 242,000 from 241,000 in 2022. by faced 139.
Madam, to alleviate immediate challenges the most vulnerable, Government will, in 2024, increase the allocation under the Public Welfare Assistance Scheme to cater for 40,000 beneficiaries from the current 16,000.

140.

Madam Speaker, the Girls’ Women’s and Education Empowerment and Livelihoods Project provides livelihood support for women and access to secondary education for girls in extremely poor households.

There 116,891 beneficiaries in 76 districts.


The Project targets to cover 129,400 beneficiaries in 81 districts by April 2024. currently are C. ENVIRONMENTAL SUSTAINABILITY 141.

Madam Speaker, to adequately prepare and respond timely to adverse weather conditions, Government will expand the coverage and enhance early warning systems.

So far, 86 automatic weather stations have been installed and an additional 34 will be installed by the end of this year.
In 2024, Government will install 50 automatic weather stations.

24 142.

Madam, climate related risks also pose increasing threats to the stability of the financial system.

In 2024, Government will enhance the legal and regulatory framework to support green finance and entrench environmentally friendly practices in the financial sector.

in review impact processing 143.


Madam Speaker, to address the rigidities assessment, environmental specific Government will provisions in the law to shorten the time taken to issue the Decision Letter.

This will ensure that decisions on complete applications are made within the specified timeframe, beyond which it will be deemed to have been approved.

This will accelerate the actualisation of investment in the country.

D. GOOD GOVERNANCE ENVIRONMENT enhance transparency 144.
Madam Speaker, to strengthen oversight in the use of public resources and and accountability, Government undertook a Governance Diagnostic Assessment and published the report in December last year.

The Assessment identified governance weaknesses and corruption vulnerabilities recommended and measures to address them.

Government will ensure that these recommendations are implemented.

25 in public 145.
25 in public 145.

Madam, to further enhance the good governance practices services, of delivery Government the integration of risk management in the public sector.

This is in line with the requirements of the Public Finance Management Act, 2018. promoting is to support growth 146.

Madam Speaker, the New Dawn Administration will continue to undertake legal, structural and policy and reforms development.
The reforms relate to domestic fiscal resource debt management, mobilisation, private decentralization, partnerships and public investment management, among others.

policy, public Fiscal Policy Speaker, 147.

Madam the overarching fiscal objective in 2024 will be to reduce the budget deficit, on cash basis, to 4.8 percent of GDP from the projected outturn of 5.8 percent in 2023.
This will be achieved mainly through efficiency gains in domestic resource mobilisation efforts and will result in revenue collection of at least of GDP while 22.0 expenditures will be contained within sustainable levels.

Government will continue to rationalise expenditure with priority placed on areas that will spur economic growth such as infrastructure development, CDF, and dismantling of percent domestic arrears.
To cushion the vulnerable people in our communities, we will continue implementing social protection programmes.

to enhance 148.

Madam, fiscal transparency and budget credibility, Government will produce a Fiscal Risk Statement on an annual basis.

The Statement will provide an assessment of risks related to the budget and a framework for managing them in the short to medium-term.

149.

Madam Speaker, Government will ensure that tax and non-tax policies remain stable and predictable.
In addition, various incentives will be streamlined, systems digitalised and administrative capacities for revenue collection enhanced.

All these efforts are aimed at maximizing revenue collection while promoting investment.

Domestic Resource Mobilisation Speaker, revenue 150.

Madam mobilisation will continue to be anchored on sealing revenue leakages and improving service delivery in tax administration.
Government will enhance compliance by implementing interventions by tax administrative leveraging on technology and changing the operating model for the Zambia Revenue Authority.

151.

Madam, Government will invoicing the electronic implement 26 system which will enable the Zambia Revenue Authority to have real time access to business transactions.

The system will prevent the use of fake invoices in VAT refund claims and ensure that only qualifying entities claim deductions.
With this system in place, all those who issue fake invoices or evade taxes, your days are numbered, and when caught, you are on your own.

presents economy 152.

Madam Speaker, the growing an digital opportunity for Zambia to further expand the tax base and collect more revenue from non-resident suppliers.

Government will, therefore, put in place a legal framework and strategies to implement taxation of the Cross-Border Electronic Services.

for income taxation 153.


Madam, Government will also review global developments in digital services' tax purposes.

Further, to pursue efficient international taxation and combat tax evasion, Zambia will join the Global Forum on Tax Transparency and tax Exchange of purposes.

This Forum will facilitate the exchange of tax information among 140 jurisdictions, ensuring transparency and combating illicit financial flows.

Information for 154.


Madam Speaker, to consolidate tax relating provisions administration, Government will, in to 2024, consultation commence to tax the harmonisation of introduce a unified Tax Administration Act.

This Act will, among others, tax enable treatment across different tax types and ease administration.

Further, Government will, in 2024, amend the Zambia Revenue Authority Act to introduce a whistleblower reward.
This will of the enable disclose whistleblowers information leading to the recovery of tax.

reward who Debt Management an external 155.

Madam Speaker, to restore debt sustainability, Government has been undertaking debt restructuring exercise with official the G20 Common creditors under Framework.

Following the agreement in principle that was reached in June this year with the official creditors, a Memorandum of Understanding will be executed between the parties.
To ensure that the interests of all parties are covered, the technical aspects of the MoU are still being refined.

We are confident that the MoU will be finalised and executed before the end of this year.

to engage 156.

Madam, Government has also continued commercial creditors, including Eurobond holders, to seek a debt treatment comparable to what has been agreed with the official creditors.

157.
157.

Madam Speaker, as part of our strategy, debt management to Government remains committed contracting only concessional loans in the medium-term.

to this, Government interest characterise 158.

Madam, high rates continue the Government securities market thereby increasing the cost on the Treasury.

To address is progressively reducing the size of the fiscal deficit.
In addition, the E-bond trading platform has been extended to include retail investors to promote competition, improve liquidity, and enhance price discovery the for Government secondary market Government securities.

issuing remains to Government through auctions and avoid private placements.

Further, committed securities in Decentralization ensure 159.

Madam Speaker, to redress inequalities, socio-economic Government that will decentralisation by devolution is fully implemented in the medium-term.
In this regard, all the eight functions in Phase I have been devolved to Local Authorities with 34,963 civil servants attached.

Matching financial resources for the devolved functions will be allocated to the Local Authorities in 2024.

To facilitate the devolution of additional functions in 2025 under 27 II, preparatory work will Phase commence in 2024. that to ensure Government 160.

Madam, the capacities of the Local Authorities are strengthened, is implementing the Zambia Devolution Support Programme.
The Programme focuses on fiscal decentralization and local area financial management, planning and budgeting, governance, and human resource management of the Local Authorities.

utilisation 161.

Madam Speaker, to ensure CDF, of efficient Government has delegated the authority to approve projects to the Provincial Administration from the Ministry of Rural Local Government Development.
To improve operational efficiency, Government has also to treasury delegated Principal Officers in Local Authorities to vary committed funds within the component for community projects.

authority and the CDF, 162.

Madam, with increased all towards allocation to constituencies will be required facilitate the provision of water reticulation and sanitation systems in public amenities.

In addition, provision of desks in public schools will continue to be prioritised.

163.
163.

Madam Speaker, the public will continue to participate in defining their development needs.

164.

Madam, Government will also review the Constituency Development the Public Fund Act, 2018 and Procurement Act, 2020 to further strengthen citizen participation and streamline procurement processes.

Population and Development in and carrying 165.


Madam Speaker, to integrate population our variables development planning, Government will continue undertaking subnational analysis capacity assessment for all districts.

The subnational analysis will establish poverty levels and living conditions of our people at constituency level.

This will help design targeted interventions to reduce poverty and inequality.

166.
166.

Madam, Government will conduct carrying capacity assessment for each district and constituency to establish their ability to deliver public services effectively and efficiently.

The assessment will also help allocate resources based on the needs of each district.

167.

Madam Speaker, according to the Living Conditions Monitoring Survey conducted in 2022, the poverty rate increased to 60 percent from 54.4 in 2015.
Consistent with percent 28 in the Eighth National strategies Development Plan, Government is undertaking various interventions to unlock the potential of the economy, raise economic growth and increase household income.

This is the surest way of addressing poverty on a sustainable basis.

Integrated National Registration Information System through 168.

Madam Speaker, our national identity documents are manual and, therefore, prone to abuse.
In this regard, Government is promoting the use of identity biometric the Integrated Registration National Information System, simply called INRIS.

This System will assign a unique national identification number at birth as opposed to when a citizen attains the age of 16.

It will also eliminate the current incidences of duplicate NRCs and the need to provide identity cards the photocopies of whenever one wants to access services such as registration for a sim card and opening of a bank account.

169.
169.

Madam, the system will also, eliminate costly silo approaches to the delivery of public services and improve the optimisation of administration of various systems.

Most importantly, the biometric identity will mitigate the use of NRCs for fraudulent transactions.

Monetary Policy 170.

Madam Speaker, when there is a rapid increase in the general price of goods and services, what we refer to as inflation, it is those with low incomes who are affected the most.
Further, high inflation disrupts business planning, raises finance, and undermines the provision of credit and the promotion of investment.

the cost of 171.

Madam, it is for this reason that the Bank of Zambia’s primary objective will remain to work towards bringing inflation to within the 6-8 percent target range.

The Bank will use all the tools at its disposal, with the monetary policy rate as the key instrument.

172.
172.

Madam Speaker, as they do so, we do recognize that some aspects of inflation, such as the increase in food prices we have experienced and that I have already alluded to earlier, are not easily addressed with the tools at the central bank’s disposal.

This requires an increase in the supply of food products.

Financial Sector Policy 173.

Madam Speaker, following the issuance of the commencement order for the Bank of Zambia Act, 2022, the Financial Stability Committee will in 2024.
The become operational Committee will, others, among formulate macroprudential policies to 29 achieve and maintain financial system stability.

that to ensure 174.

Madam, the financial sector effectively contributes to growth and economic development, the Banking and Financial Services Act, 2017 will be reviewed in 2024.

175.

Madam Speaker, the cost of borrowing remains high.


With the economic reforms we have undertaken since coming into office, including the significant reduction in the budget deficit, we expect yield rates on Government securities to fall.

Lower Government borrowing also means that there is more money available for the private sector to borrow.

Government, therefore, also expects commercial banks to play their part by lowering interest rates.

Financial Inclusion is an Speaker, important 176.


Madam financial inclusion in tool empowering all Zambians to fully participate in economic development.

in We have made good progress improving financial inclusion and the rapid expansion in the use of mobile money has played a leading role.

177.
177.

Madam, given that the growth in the use of mobile money is an financial important inclusion, internet improving connectivity is critical in increasing the channel for number of people who are financially included.

The policies I have outlined to expand the network of mobile towers and access to satellite technology will increase and, therefore, facilitate greater inclusion.

coverage network 178.

Madam Speaker, a second key constraint to financial inclusion is financial literacy.
The Bank of Zambia will continue to sensitize the public through its “Go Cashless” Awareness Campaign.

More broadly, Government will, before the end of this year, launch the second National Financial Inclusion Strategy.

The Strategy will cover the period 2024 to 2028 and has the goal of ensuring universal access to and usage of a broad range of financial services.

External Sector Policy external 179.

Madam Speaker, Government will continue to maintain a flexible exchange rate regime.
In this regard, Government will cushion the economy against by accumulating adequate international reserves and providing necessary market support.

To increase foreign exchange earnings, Government will industrialisation promote export-led and attract foreign direct investment.

shocks 180.

Madam, to promote exports, supporting value Government addition and integrated value chains in priority sectors that include agriculture, is 30 to expose exporters tourism, mining and manufacturing.
The strategies include scaling up trade to missions international markets, improving the encouraging quality of products, ventures, partnerships enhancing identification of new export products, export readiness of enterprises.

and developing joint and through 181.


Madam Speaker, Government remains committed to enhancing the quality of balance of payments statistics and strengthening the Anti-Money Laundering/Combating Financing of the full Terrorism regime implementation of the Electronic Balance of Payment Monitoring System.
To this end, the Bank of Zambia has developed an Export Proceeds Tracking Framework that will require all exporters to route export earnings through an account held at a bank domiciled in Zambia while retaining full rights and control to use fit.

the Implementation of the Framework will commence on 1st January, 2024.

The funds deem they as Bank of Zambia will continue to undertake extensive consultations with to all implementation.

stakeholders prior Part III THE 2024 BUDGET is grants 182.
Madam Speaker, Government proposes to spend K177.9 billion or 27.8 percent of GDP.

To support this expenditure, K141.1 billion or 22.0 percent of GDP will be domestic revenue, K3.4 billion or 0.6 percent of GDP from Cooperating Partners, and K33.3 billion or 5.2 percent financing.

Accounting for amortisation of K2.5 billion or 0.4 percent of GDP, net financing translates into a fiscal deficit, on cash basis, of K30.8 billion or 4.8 percent of GDP.

of GDP is 183.
of GDP is 183.

Madam, I now present details of the proposed expenditure, revenue and the attendant borrowing for the 2024 Budget.
31 2024 EXPENDITURE BY FUNCTIONS OF GOVERNMENT 2024 BUDGET ALLOCATIONS BY FUNCTIONS OF GOVERNMENT FUNCTION General Public Services O/w Domestic Debt External Debt (Interest and Principal) Dismantling of Arrears Local Government Equalization Fund Compensation Fund Defence Public Order and Safety O/w Integrated National Registration Information System (INRIS) Economic Affairs O/w Agriculture, Fisheries & Livestock Interventions 2024 BUDGET K 58,929,609,925 32,905,550,262 6,011,715,419 6,864,198,983 1,449,071,480 703,300,000 9,922,469,354 6,755,876,279 250,000,000 39,755,488,379 13,826,019,474 SHARE OF BUDGET 33.1% 5.6% 3.8% 22.3% O/w Farmer Input Support Strategic Food Reserve Farm block Development, Irrigation & Extension Services Animal Disease Control 8,561,421,253 1,680,000,000 598,376,550 498,822,748 Road Infrastructure Constituency Development Fund O/w Community Projects Youth & Women Empowerment Funds Tourism Sub-Sector Provincial Aerodromes Infrastructure Empowerment Funds for SMEs Credit Guarantee Scheme Geological Mapping Public Sector Credit Facility Environmental Protection Housing and Community Amenities O/w Water Supply & Sanitation O/w Construction and rehabilitation of dams Health O/w Drugs and Medical Supplies Health Infrastructure O/w Construction of Mini Hospitals Electronic Health Records System Recreation, Culture and Religion Education O/w School Grants School & University Infrastructure Higher Education Scholarship Board Constituency Development Fund O/w Secondary Schools & Skills Development Bursaries Equipping of TEVET Institutions Social Protection O/w Social Cash Transfer Public Service Pension Fund Food Security Pack Local Authorities Superannuation Fund TOTAL Note: The Table highlights only some of the notable expenditure items under each of the function categories.
100.0% 32 General Public Services 184.

Madam Speaker, the allocation to General Public Services amounts to K58.9 billion or 33.1 percent of the budget.

Of this, K32.9 billion will be used to service domestic debt while K6.0 billion is for external debt.

I have also allocated K703.3 million to the Compensation Fund.

185.
185.

Madam, to promote efficient, effective and equitable public service delivery across districts, I have allocated K1.4 billion to the Local Government Equalisation Fund which will be turned into a recurrent grant, starting in 2024.

This will, among others, support the remuneration of councillors and give Local Authorities more power to make decisions.
This is in recognition of the fact that projects being were that implemented the Local through Government Equalisation Fund will now be covered under CDF.

I have also allocated K6.9 billion for dismantling of arrears to unlock the much-needed liquidity in the market.

previously Economic Affairs 186.

Madam Speaker, Government proposes to spend K39.8 billion or 22.3 percent of the total budget to support the economic sectors and unlock growth potential of our country.
The substantial resources allocated to this 33 function are in line with our priorities espoused the Eighth National Development Plan.

in 187.

Madam, of the allocated funds to the Economic Function, K8.3 billion is for the construction, rehabilitation and maintenance of roads, including feeder roads across the country.

This is an increase of 59.6 percent from K5.2 billion in 2023.

I for the Farmer 188.


Madam Speaker, have allocated K13.8 billion the implementation of programmes under the agriculture, fisheries and livestock sector.

Of this amount, K8.6 billion is for Input Support Programme to cover over 1 million beneficiaries.

About 77 percent of the support beneficiaries will through system.

Government has also allocated K1.7 billion for the maintenance of strategic food reserves.

receive e-voucher the to Speaker, 189.


Madam the completion of the development of the identified farm blocks will be a game changer agricultural boosting production and productivity.

In this regard, I have allocated K598.4 million towards the Nansanga, Luena, Luswishi farm blocks.

This and Shikabeta amount will the towards go construction of at least 300 kilometres of roads and 10 bridges as well as the Citizens Economic Empowerment Commission.
This is in addition to other funds under CDF, empowerment Gender Division, and the Ministries of Community Development and Social Services, and Youth, Sport and Arts.

regional hub 195.

Madam Speaker, to improve air transport and to ensure that Zambia for air becomes a connectivity, I propose to spend K700.7 million on Provincial Aerodromes.

The the allocation rehabilitation and upgrade of Mansa, Mbala, Mongu, and Solwezi Airports the development of Chinsali, and Choma, and Kasaba Bay Airports.
earmarked for is I have development 196.

Madam, allocated K769.5 million to the tourism sector for the tourism infrastructure, marketing, wildlife management, and development of tourism products, among others.

of to 197.

Madam Speaker, to improve access to affordable loans for public servants, I have allocated K150.0 the Public Service million Microfinance Company.
The amount will go towards the recapitalization of the institution to provide affordable loans and other innovative financial solutions to public service workers across the country.

electrification development.

and irrigation to 190.

Madam, I have increased the allocation the Zambia Credit Guarantee Scheme to K386.0 million from K150.0 million this year.
Of this amount, K186.0 million is for the establishment of a financing and credit window for small scale farmers, public service workers, and emergent farmers.

I 191.

Madam Speaker, have allocated K498.8 million towards the procurement of vaccines, animal health extension services, surveillance, animal identification and put into operation regional veterinary laboratories.

to 192.
to 192.

Madam, promote diversification in the mining sector, I propose to spend K160.0 million on support to geological mapping exploration and investments.

193.

Madam Speaker, to ensure that more resources are directly provided to communities for local development, including basic services such as clean and safe water, maternity wings, and school desks, I propose to increase the allocation to CDF to K4.8 billion.
With this increase, each constituency will receive K30.6 million from the current K28.3 million.

194.

Madam, promote entrepreneurship among our people, I propose to allocate K391.9 million to to 34 Education 198.

Madam Speaker, to lay a firm foundation for our children to develop into productive and innovative citizens, I propose to spend K27.4 billion or 15.4 percent of the budget on the Education Function.

199.
199.

Madam, of the allocated funds, I propose to spend K1.9 billion on grants to schools in line with our free education policy.

In addition, I propose to increase the allocation to the School Feeding Programme to K111.7 million increase from K39.4 million coverage and improve the quality of meals.

This provision is very important for next year, in particular, and is part of the response measure to the escalated food prices.

to 200.
to 200.

Madam Speaker, to continue the program of completing with abandoned I propose to spend K338.3 million.

secondary schools, 201.

Madam, I propose an allocation of K70.0 million for equipping TEVET training centres with modern equipment to enable them provide quality and relevant vocational skills.

202.

Madam Speaker, to improve service delivery in the education sector, I propose to allocate K356.1 million for the recruitment of 5,400 personnel.
Of this, 4,200 will be teachers while the balance of 1,200 will be non-teaching 35 staff.

The recruitment of teachers will not only the backlog of unemployed teachers but also improve the teacher-pupil ratio.

reduce 203.

Madam, I propose to increase the allocation to the Higher Education Loans and Scholarship Board to K1.2 billion.

This will increase the number of students benefiting from the Loan Scheme.

Health 204.
Health 204.

Madam Speaker, to support the delivery of health services, I propose to allocate K20.9 billion or 11.8 percent of the budget.

Of this amount, K5.0 billion is for the procurement of medicines and medical supplies.

205.

Madam, to increase access to healthcare for our citizens, I propose to allocate K1.4 billion towards health infrastructure development across the this amount, K239.8 country.
Of million will go towards the completion of the remaining 4 mini-hospitals in Phase I, and the commencement of the construction of 135 mini-hospitals under Phase II of the Project.

206.

Madam Speaker, to improve quality of healthcare, I propose to allocate K344.1 million the recruitment of 4,000 health personnel.

for 207.
for 207.

Madam, to strengthen the health care management information system, I propose to allocate K120.0 million towards the scaling up of the Electronic Health Record System with support from Cooperating Partners.

will also be used to rehabilitate prison infrastructure as well as complete the construction and rehabilitation of police stations and posts.

Housing and Community Amenities Social Protection of standards 212.
Madam Speaker, to uplift the living vulnerable Zambians, I propose to allocate K9.7 billion for social protection related expenditures.

Of this amount, K4.1 billion is for the Social Cash Transfer Programme.

213.

Madam, for our pensioners, I propose to increase the allocation to the Public Service Pension Fund to K3.9 billion from K2.4 billion.

I have also increased the allocation to the Local Authorities Superannuation Fund to K400.0 million from K300.0 million.
The increase in the allocations is aimed at reducing the waiting time for pension payment.

Environmental Protection K1.5 billion 214.

Madam Speaker, I propose to towards spend environmental protection.

The funds will be used to implement various programmes and projects to protect the environment and build resilience against the effects of climate change.

208.

Madam Speaker, I propose to spend K2.7 billion on housing and community amenities.

I have 209.
I have 209.

Madam, allocated K443.5 million for the construction of 28 dams and rehabilitation of 6 dams.

This is in line with Government’s commitment irrigation development for sustainable agriculture production and enhanced productivity.

to promote 210.

Madam Speaker, to improve and ensure our citizens have clean and safe water, I have allocated K126.7 million for the construction of 1,374 boreholes.
I have further provided K38.5 million for the rehabilitation of 1,270 non-functional boreholes in peri- urban and is complimentary to the works being done under CDF.

rural areas.

This Public Order and Safety I 211.

Madam Speaker, have allocated K6.8 billion towards the Public Order and Safety Function.

Of this allocation, K250.0 million will be for the implementation of the Integrated National Registration Information System.

The allocation to the function 36 Other Functions 215.
Madam Speaker, I propose to allocate K10.4 billion to the functions of Defence as well as Recreation, Culture and Religion.

REVENUE ESTIMATES AND MEASURES Resource Envelope for the 2024 Budget 216.

Madam Speaker, Government intends to raise K177.9 billion to meet the proposed expenditure.

This amount will comprise K141.1 billion in domestic revenue of which K114.5 billion will be tax revenue while K26.5 billion will be non-tax revenue.

Grants from Cooperating Partners will be K3.4 billion.

217.
217.

Madam, K33.3 billion will be financed through debt in accordance with the Annual Borrowing Plan.

Of this amount, K16.3 billion will be domestic and K17.0 billion external financing.

37 2024 RESOURCE ENVELOPE TOTAL DOMESTIC REVENUE, GRANTS AND FINANCING Amount (ZMW) Share of Budget Share of GDP 177,891,868,893 100% 27.8% I.

Total Domestic Revenue and Grants 144,548,825,519 81% 22.6% II.

Domestic Revenue Tax Revenue a.


Income Tax 141,113,730,377 79% 22.0% 114,578,995,181 64% 17.9% 61,322,017,941 34% 9.6% Company Tax 25,680,487,986 Pay As You earn (PAYE) 23,714,783,839 Withholding Tax and Other Revenues 11,926,746,116 b.
Value Added Tax (VAT) c. Customs and Excise Duties Customs Duties Excise Duties d. Export Duties Non-Tax Revenue 8,481,448,663 8,292,818,241 36,361,861,216 16,774,266,904 20% 9% 5.7% 2.6% 120,849,119 0% 0.0% 26,534,735,196 15% 4.1% o/w Mineral Royalty 10,004,179,542 Total User fees, fines and Charges 12,413,810,640 Interest from On-lending/Dividends 3,359,109,959 Skills Development Levy Insurance Premium Levy Motor Vehicle Fees Tourism Levy 268,248,591 253,259,592 209,511,287 26,615,586 III.
Grants 3,435,095,142 2% 0.6% 33,343,043,374 19% 5.2% IV.

Total Financing Domestic Financing Foreign Financing o/w Programme Loans Project Loans 16,328,755,585 17,014,287,789 7,671,674,398 9,342,613,391 38 218.

Madam Speaker, there has been an understandable concern on the tax burden especially given the rise in the cost of living.

Even in the midst of tight fiscal space, it is imperative that we provide some relief to the worker.
In this regard, I propose to revise the Pay As You Earn by increasing the exempt threshold to K5,100 from K4,800 and reducing the top rate to 37.0 percent from 37.5 percent.

The following is the proposed Pay As You Earn regime: Current Regime Proposed Regime Income Band (K, per month) Tax Rate Income Band (K, per month) Tax Rate K0 – K4800 K4,801 – K6,800 K6,801 – K8,900 Above K8,900 0% 20% 30% K0 – K5100 K5,101 – K7,100 K7,101 – K9,200 37.5% Above K9,200 0% 20% 30% 37% 219.
Madam, to promote investment in power generation, I propose to increase the period in which a business can claim a refund on VAT incurred on the eligible commencement commercial operations to 7 years from the current 4 years for hydroelectricity generation.

This is to allow for sufficient time for the investment to materialise.

before goods of 220.

Madam Speaker, to promote geothermal energy, I propose to remove customs duty on machinery, equipment for and geothermal energy activities.
designed goods other 221.

Madam, to spur growth in the media and film industry, I propose to expand the list of selected media, film for which and music equipment 39 customs duty was suspended in the 2023 Budget.

The relief on customs duty will be for a period of 3 years.

222.

Madam Speaker, to promote local investment in the manufacturing sector, following measures: I propose the a) Extend the 2 percent local content allowance on income earned from value addition to sorghum and millet.
This is in addition to other products that are already benefiting from this incentive cassava, namely, mango, pineapple, and tomato; b) Increase company income tax relief to 20 percent from 14.2 percent of the taxable profits for the first five years of operation for businesses in rural areas; c) Provide for the allowance of losses of up to 1 percent on cut rug (shredded tobacco) in the production of cigarettes; d) Remove customs duty on importation of motorcycles and tricycles imported in complete for knock companies that assemble and source at least 5 percent inputs locally; down form e) Introduce, remove and increase Selected Goods Surtax on some products; f) Increase the customs duty rate to 25 percent from 15 percent on electrical panels; and g) Reduce excise duty rate by 50 percent on locally produced clear beer for small and medium manufacturers that produce less than 500,000 litres per annum.
This measure will be reviewed after three years subject to performance-based parameters.

economic 223.

Madam, as part of our drive to unlock potential, Government will provide incentives to revitalise industry value chains.
For a start, I propose the following incentives for the cotton value chain: a) Provide a 5-year tax holiday on profit for local producers of cotton seed; 40 b) Provide a 5-year tax holiday on profit from ginning of cotton; and c) Provide a 10-year tax holiday on profit made from spinning of cotton and weaving of thread.

224.

Madam Speaker, to improve railway operations, I propose to remove customs duty on the importation of rolling stock, namely, wagons and locomotives.

225.
225.

Madam, to continue promoting the usage of clean energy as well as supporting the green economy and climate change mitigation, I propose the following measures: a) Remove customs duty on electric motor cycles, electric vehicles, electric buses, electric trucks, and attendant accessories such as charging systems; and b) Reduce excise duty to 25 percent from 30 percent on hybrid vehicles designed for the transportation of persons.

226.
226.

Madam Speaker, to promote the Multi-Facility of development Economic Zones, the following measures: I propose a) Extend the accelerated depreciation up to 100 percent in respect of any new products to K400 per mille from K361 per mille; c) Introduce excise duty at 5 percent on specific solid fuels made from coal; and d) Change the excise duty valuation method for spirits, liqueurs, and other spirituous beverages to be determined on the basis of market price and not the value of inputs at importation.
230.

Madam Speaker, to ensure that everyone something, contributes however small, to the provision of public services, I propose to introduce a levy of between 8 ngwee and K1.80 on the transaction value for person-to- person mobile money transfers.
The following is the proposed fee structure: Amount range (K) Between 1 to 150 Above 150 to 300 Above 300 to 500 Above 500 to 1,000 Above 1,000 to 3,000 Above 3,000 to 5,000 Above 5,000 to 10,000 Above 10,000 Proposed Levy (K) 0.08 0.10 0.20 0.50 0.80 1.00 1.50 1.80 implement, plant or machinery to developers of Multi-Facility Economic Zones; and b) Provide for the extension of the validity period for the customs duty incentives accessible by a developer of a Multi-Facility Economic Zone for 5 years upon fulfilment of the conditions as may be prescribed.
227.

Madam, to promote oil and gas exploration, remove I propose customs duty on machinery, equipment and other goods designed for petroleum exploration.

to that 228.

Madam Speaker, contrary to incentives are only assertions meant to benefit foreign investors, I wish to categorically state that all the incentives that Government provides, including I have announced today, are available to both local and foreign investors without exception.

the ones that 229.
the ones that 229.

Madam, to enhance domestic revenue mobilization, I propose the following measures: a) Increase specific excise duty on non-alcoholic beverages to 60 ngwee per litre from 30 ngwee per litre; b) Increase specific excise duty for tobacco and tobacco 41 Non-Tax Revenue Measures Part IV 231.
Madam Speaker, I propose to: CONCLUSION a) Introduce a fee of K3,750 for DNA testing under the National Forensic Science and Biometrics Department; b) Increase the license fee for commercial Kapenta operators to K4,000.00 from K3,333.00 last revised in 2011; and c) Increase toll tariffs for heavy duty trucks with 4 axle and above by K100 and abnormal load vehicles by K300.

232.

Madam, in summary the net effect of the revenue measures I have proposed is a gain of K721 million.

233.
233.

Madam Speaker, the measures outlined will take effect on 1st January, 2024. all House Keeping Measures 234.

Madam Speaker, to update, strengthen and remove ambiguities in certain provisions of the tax laws and make tax administration more effective, I propose to amend the Income Tax Act, the Customs and Excise Act and the Value Added Tax Act, among others.

235.
235.

Madam Speaker, the journey to economic transformation we embarked on in 2021 requires us to unlock the potential of our country and build resilience through inclusiveness and partnerships.

This calls for hard work, perseverance and discipline to achieve our shared vision.

236.

Madam, we are alive to the challenges confronting us especially the high cost of living.

Your Government is working towards addressing the high mealie meal and fuel prices.
We are also revamping the economy to create for our employment opportunities people.

237.

Madam Speaker, the journey to a better Zambia is a collective one.

It requires active participation of all citizens.

Together, we can overcome the challenges we face today.

Together, we can build the Zambia we want.

Together, we shall benefit from our wealth and prosperity.

And together, we will march towards our Vision 2030 of becoming a prosperous middle-income nation.

238.
238.

Madam, the Budget I have presented today is a clear demonstration of our commitment to unlocking the economy, uplifting the livelihoods of our people and providing a conducive 42 for private environment sector participation.

We have made strides in restructuring our external debt and in restoring fiscal discipline.

We have increased to infrastructure development.

We have provided the private sector.

incentives allocation the to 239.


Madam Speaker, as if this is not enough, we have continued the recruitment of teachers and health workers.

We have strengthened social protection.

We have the waiting period for pension payments to three months from over three years.

We are developing farm blocks.

We have resolved challenges at KCM and Mopani Mine and are attracting more investments in the mining sector.

reduced 240.

Madam, we have yet again increased the allocation to CDF.
We are indeed a Government of works, not mere words!

241.

Madam Speaker, I beg to move.

43